AUDNZD Resistance Holds Firm Ahead Of Inflation Data

Australia will release Q1 inflation data early on Wednesday as resistance is holding against the New Zealand dollar. 

AUDNZD – Daily Chart

AUDNZD – Daily Chart 

The AUDNZD pair found resistance at the 1.094 level and now trades at 1.0886 with the potential to slip further to the 1.08 level. 

Inflation data for the Australian economy will be released on Wednesday at 6:45 am HKT.  

Q4 data showed inflation at 4.7%, down from 6.7% a year ago. A sharper drop in inflation could reduce the Aussie dollar’s recent gains. 

The International Monetary Fund has warned that Australia will lag behind other developed nations in reducing inflation and boosting economic growth. Australian Treasurer Jim Chalmers is about to visit Washington for high-level talks. 

With less than a month until the May budget, Chalmers will leave the country on Thursday to attend meetings with his counterparts at the G20, IMF, and World Bank. 

The economic slowdown in China, growing tensions in the Middle East, and the prospect of delayed interest rate cuts weighing on the global economy are topics to be covered at the talks. 

“These evolving global conditions make it an important time to engage with my counterparts and international institutions as we put the final touches on the May budget,” he said on Tuesday. 

In the latest World Economic Outlook, released on Tuesday, the IMF forecast that headline inflation in Australia would ease to 3.5% this year, down from its October projection of 4%. However, the projections showed that consumer price growth would still be 3% on average through 2025 at the high end of the RBA’s 2% to 3% target band. 

The inflation figures this week will test those projections. If inflation is shown to be weakening more than expected, it could lead to a drop in the Aussie dollar.

Recent News
Start Trading Now!

Try our demo account for free to learn trading. When you’re ready, switch to the live account and start trading for real.

Popular posts
ATFX

Account Registration Unavailable

Please note that you may be accessing this page from outside South Africa. For retail and professional inquiries regarding AT Global Markets SA (Pty) Ltd, kindly reach out to us at [email protected]

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not available for Hong Kong investors and not related to any corporation licensed by the Securities and Futures Commission in Hong Kong.

All the information and materials posted on this website should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制:本網站的產品及服務不適用於香港投資者及與任何香港證監會持牌公司無關。

網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。